Franklin Electric Co Inc (FELE)
Inventory turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,819,792 | 1,830,759 | 1,842,060 | 1,824,038 | 1,803,722 | 1,755,726 | 1,686,623 | 1,601,246 | 1,487,172 | 1,386,792 | 1,285,273 | 1,172,742 | 1,126,320 | 1,131,092 | 1,133,983 | 1,171,284 | 1,199,650 | 1,196,025 | 1,191,857 | 1,183,604 |
| Inventory | US$ in thousands | 508,696 | 543,540 | 574,642 | 600,651 | 544,980 | 557,604 | 567,143 | 527,867 | 449,975 | 395,531 | 350,121 | 310,330 | 300,932 | 289,292 | 299,395 | 310,006 | 300,246 | 333,810 | 352,383 | 336,639 |
| Inventory turnover | 3.58 | 3.37 | 3.21 | 3.04 | 3.31 | 3.15 | 2.97 | 3.03 | 3.31 | 3.51 | 3.67 | 3.78 | 3.74 | 3.91 | 3.79 | 3.78 | 4.00 | 3.58 | 3.38 | 3.52 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,819,792K ÷ $508,696K
= 3.58
Franklin Electric Co., Inc.'s inventory turnover has shown a consistent trend over the past eight quarters. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times during the period the company sold and replaced its inventory.
From Q1 2022 to Q4 2023, the inventory turnover ratio has ranged from 2.21 to 2.69 times. This indicates that, on average, the company is able to sell and replace its inventory between 2.21 to 2.69 times within a year. A higher inventory turnover ratio generally signifies that the company is effectively managing its inventory and potentially turning over its stock more frequently.
The gradual increase in the inventory turnover ratio from Q1 2022 to Q4 2023 suggests an improvement in the company's inventory management efficiency. This could be due to better forecasting, inventory control, or demand planning processes. However, it is essential to assess industry benchmarks and compare the company's inventory turnover ratio with its competitors for a more comprehensive analysis.
Overall, the trend in Franklin Electric Co., Inc.'s inventory turnover ratio indicates a positive direction in managing inventory levels and could potentially lead to improved liquidity and profitability in the long term.
Peer comparison
Dec 31, 2023
Dec 31, 2023